FINANCE
an employee is 10.8% of Dallas’s total assessable
income reportable fringe benefits, and reportable
employer superannuation contributions of $73,800
for the year).
NEW RULES
Under the new rules, Dallas is now able to claim a
deduction for the full amount of the contribution of
$18,000 as the 10% test no longer applies. Claiming
an $18,000 tax deduction will save Dallas $5,850
in tax (2017/2018 tax rates, not including Medicare
levy).
All individuals under the age of 65 are eligible.
Those aged 65 to 74 must meet the superannuation
‘work test’ (that is, work for at least 40 hours in a
period of not more than 30 consecutive days in the
financial year in which you make the contribution).
To claim the deduction you must provide your
superannuation fund with a Notice of Intention to
claim a deduction form before you lodge your tax
return in respect of that financial year.
2. Expanded Spouse Tax Offset
The spouse contributions tax offset has been made
more generous. More taxpayers can now reduce
their own personal tax liability while helping to
provide for the retirement of their spouse.
From 1 July 2017, where you make a
superannuation contribution for your spouse
you can claim a tax offset equal to 18% of your
contributions, subject to the following rules:
• The maximum offset is $540. This
means that the offset can be claimed for a
maximum of $3,000 contributions (18% of
$3,000).
• If the sum of your spouse’s ‘total
income’ (consisting of assessable income, plus
reportable fringe benefits total, plus reportable
employer superannuation contributions) is greater
than $37,000 (up from $10,800), the maximum
contributions eligible for the tax offset ($3,000) is
reduced by the excess. Consequently, no tax offset
can be claimed where the spouse’s total income is
greater than $40,000 (up from $13,800).
Leaving aside the spouse tax offset, making
contributions to your spouse’s account is also a
useful strategy where one spouse is a low-income
earner or is not working, as it can help equalise
your account balances. One of the advantages
of this is that if you or your spouse opts to take
a lump sum payment between Preservation
Age and 60, you can both access the $200,000
tax-free threshold (2017/2018 rates) and
consequently withdraw up to $400,000 from your
superannuation accounts tax-free before the age
of 60.
2017
Leaving aside the
spouse tax offset,
making contributions
to your spouse’s account
is also a useful strategy
where one spouse is
a low-income earner
or is not working, as it
can help equalise your
account balances
100 Pindara Magazine 2017